December 31, 2019 – The IRS announced today the new auto mileage rates for 2020.
Per IRS Notice 2019-215, effective January 1, 2020, the rates per mile will be:
Business – $0.575
Medical or moving – $0.17
Charitable – $0.14
You also have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates.
The IRS Notice contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
The decision to use the Standard Mileage Rate or the Actual Method should always be made after careful analysis of your particular tax situation. If you have any questions about which method to use or for any other questions that require an in-depth analysis, please contact us to schedule an appointment.
The 2021 auto mileage rates will be announced in December 2020.